TomD8
Level 15

Investors & landlords

<<"Our rental is not for profit, did not make enough to cover interest/taxes so we do not have to claim the income.">>

 

Not true.  Not-for-profit income must be declared.  

Per the IRS:

Report your not-for-profit rental income on Schedule 1 (Form 1040 or 1040-SR), line 8, or Form 1040-NR, line 21.

If you don’t rent your property to make a profit, you can’t deduct rental expenses in excess of the amount of your rental income. You can’t deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year.

 

See "Not Rented For Profit" in this IRS reference:

https://www.irs.gov/publications/p527#en_US_2019_publink1000219164

 

Not that not-for-profit rental income is not reported on Schedule E.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.